It is the Procurement Administrator’s understanding that each of the supplier contracts for a Company will be administered separately such that margining under each contract will be calculated separately. Should multiple supplier contracts be subject to a margin call, a Company may transmit each such margin call under a single aggregate margin call.  There will be, however, a single shared unsecured credit line across the contracts provided by the Company to the credit support provider.

On September 7, 2022, the Fall 2022 AIC capacity procurement event originally scheduled to be held on September 16, 2022 was cancelled when the IPA filed a Notice of Cancellation of Capacity Procurement Event with the ICC. At this time, the IPA is still in the process of considering next steps for procuring capacity for the AIC portfolio for the 2023-2024 Delivery Year and the 2024-2025 Delivery Year. Additionally, there is no mechanism under the IPA’s electricity procurement plan for suppliers to submit individual offers outside of the procurement process.

An announcement will be sent when more information becomes available.

Only minor changes were made to the Confirmation Sheet for ComEd between the Spring 2022 BEC RFP and the Fall 2022 BEC RFP. All other contract documents remain unchanged.

Redlines of these changes are posted to the Final Materials page of the Block Energy and Capacity section of the procurement website.

No. Bidders in the AIC Energy procurement event wishing to rely on the financial standing of a Guarantor must use the standard form of guaranty, Form of Guaranty, and may incorporate the optional changes for AIC. The optional changes for AIC are in the documents named “Schedule 1 to the Form of Guaranty” and “Schedule 2 to the Form of Guaranty”. Bidders in the ComEd procurement event wishing to rely on the financial standing of a Guarantor must use the standard form of guaranty, Schedule 2 to Collateral Annex (Guaranty), and may incorporate the optional changes for ComEd. The optional changes for ComEd are in the document named “Optional Changes to the Form of Guaranty”. A Bidder may also meet the collateral requirements of the (AIC) Confirmation Agreement and (ComEd) Master Agreement by posting cash or using one of two options for the Post-Bid Letter of Credit available under each of the applicable supplier contracts. All documents referenced are posted to the Final Materials page of the procurement website.

You do not need to register for Bidder Training. The Bidder Training consists of time set aside for Bidders to practice all aspects of the bid submission procedures. The Procurement Administrator is available at that time answer questions regarding the completion of the Bid Form(s) and to evaluate the Bid Form(s). Bidder training is done via the Procurement Administrator’s Secure Bid Transfer interface and is not conducted via a webcast.

Please have on hand the Invitation to Bidder Training, Bid Form(s), Confidential Information for Training (blue background), and the Bid Form Guide(s). These documents were distributed with the Part 1 Notification via the application website on August 22, 2022. A Bidder can access these files using the same login credentials used to access the online Part 1 and Part 2 Forms. Please see the “Documents” section.

All bid assurance collateral remains in place until the Commission has rendered a decision on the results of a procurement event. For Bidders with Bids approved by the Commission, bid assurance collateral remains in place until full execution of the applicable supplier contract and until payment of the Supplier Fee is received. Return of cash tendered as bid assurance to a Company is not initiated until a Company receives a fully executed request for the return of cash in a form acceptable to that Company. Bidders participating in a procurement event for AIC must also send to AIC a Supplier Request Form that AIC finds to be duly completed. Requirements related to AIC’s Supplier Request Form are described in Section V.6 of the RFP Rules.

The Commission renders its decision on the results of the procurement events for Energy Products on Thursday, September 15, 2022. The Commission renders its decision on the results of the procurement event for AIC Capacity Products on Thursday, September 22, 2022.

The expiration date for the Pre-Bid Letters of Credit for Energy Products is October 5, 2022. The expiration date for the Pre-Bid Letter of Credit for AIC Capacity Products is October 12, 2022.

In regards to procurement events held for block energy, within two (2) business days of the Bid Date, the Procurement Administrator submits a confidential report that provides the results of the bidding, as well as a recommendation on whether the results should be accepted or rejected to the Commission for each procurement event (i.e. a separate recommendation for each of the procurement events for AIC and ComEd). The Procurement Monitor also submits to the Commission a confidential report regarding the results of such procurement event as well as a recommendation on whether these results should be accepted or rejected. The Commission decides whether to accept or reject the results of such procurement event within two (2) business days of receiving the confidential reports from both the Procurement Administrator and the Procurement Monitor.

As seen in the public notices posted to the ICC’s Electricity Procurement Process page, https://www.icc.illinois.gov/programs/electricity-procurement-process, the Commission has approved the Procurement Administrator’s selection of winning bids for each instance of the procurement of electricity pursuant to Illinois Public Act 95-0481, effective August 28, 2007 (the “Act”), including the Act’s amendments to the Public Utilities Act (“PUA”).

Please note that the Procurement Administrator cannot speculate or anticipate the Commission decision on the Fall 2022 Block Energy Procurement Events. It is entirely up to each supplier to form its own expectations in this regard.

Yes, a supplier may work directly with a Company during the delivery term to receive a credit assessment for a Guarantor and to submit a Guaranty. The creditworthiness assessment includes a review of the Guarantor’s credit ratings and financial information.

A supplier may not rely on a Guarantor that does not meet the minimum credit ratings described in the contract for a Company. The minimum credit ratings are provided in Table A of the (AIC) Confirmation Agreement and Paragraph 10 of the Coversheet of the (ComEd) Master Agreement. An executed guaranty acceptable to the Company must be provided.

Yes. A supplier may post any required performance assurance under the (AIC) Confirmation Agreement and the (ComEd) Master Agreement using both cash and a letter of credit at the same time.

The collateral requirement under each of the (AIC) Confirmation Agreement and the (ComEd) Master Agreement for the energy procurement events is based on a mark-to-market methodology. For the (ComEd) Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. For the (AIC) Confirmation Agreement, relevant information is provided in Exhibit D – Collateral Annex and Exhibit E – Paragraph 10 to the Collateral Annex. There is not a minimum or maximum amount of performance assurance required on a per block basis.

Under the applicable supplier agreement, the bidder or a guarantor, if applicable, may be granted unsecured credit based on a creditworthiness assessment. The creditworthiness assessment is based on the Bidder’s (or Guarantor’s, as applicable) financial statements and credit ratings submitted with the Part 1 Proposal and the result of the assessment will be provided to the Bidder with the Part 1 Notification. If the Bidder is relying on the creditworthiness of a Guarantor, an executed guaranty acceptable to the Buyer must be provided.

Any required performance assurance may be posted in the form of cash or a letter of credit. The standard forms of the guaranty and the letter of credit are appended to each of the supplier agreements. There is a Minimum Transfer Amount, defined under the applicable supplier agreements, of $100,000 for both AIC and ComEd (subject to rounding).

Please note that for each of the (AIC) Confirmation Agreement and the (ComEd) Master Agreement, a bidder should refer to the front portion of the (AIC) Confirmation Agreement and the Cover Sheet of the (ComEd) Master Agreement, respectively, for amendments and elections to the EEI Collateral Annex and paragraph 10 to the Collateral Annex.

It is the responsibility of each bidder to review the terms of the applicable supplier agreement (for each of AIC and ComEd) posted to the Block Energy and Capacity Procurement section of the procurement website. Each bidder accepts these terms as a condition of its participation in the BEC RFP.

The Procurement Administrator will notify a Bidder that had Bids evaluated in a procurement event for Energy Products whether any of the Bidder’s Bids for the 2022-2023 Delivery Year will be identified as “winning Bids” to the ICC by 4 PM on the Bid Date for Energy Products. For the 2022-2023 Delivery Year Products are available for each Company for October 2022 through May 2023.

The Procurement Administrator expects to notify a Bidder that had Bids in a procurement event for Energy Products that were evaluated whether any of the Bidder’s Bids for the 2023-2025 Delivery Years will be identified as “winning Bids” to the ICC by 6 PM on the Bid Date for Energy Products, however, it is possible that such notification will be provided after 6 PM. For the 2023-2025 Delivery Years Products are available for each Company for June 2023 through May 2025.

Correct. The Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit for that Company or incorporate only modifications approved by the Company and posted to the procurement website.

Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive this information.

The Bid Assurance Collateral Instructions for each Company were distributed to Bidders on August 16, 2022. Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive these documents.

The requirements for this financial attestation are provided in Appendix 9 of the RFP Rules. Appendix 9: Financial Attestation is posted to the Final Materials page.

No. Bidders must duly complete and submit the Inserts prepared for the specific procurement event for which the Bidder would like to qualify to participate in. The Inserts for the Fall 2022 BEC RFP were posted to the Final Materials on July 13, 2022.

If you are a winning bidder in this Fall 2022 BEC RFP, for a given Company, you must execute a new supplier contract regardless of whether you are a winning supplier or not from a prior procurement event.

Neither the Procurement Administrator nor the Companies review draft language for the Pre-Bid Letter of Credit.

The Procurement Administrator will not be soliciting comments on the Standard Pre-Bid Letters of Credit in the Fall 2022 Block Energy and Capacity RFP.

A Bidder that is submitting Bids for the Fall 2022 Block Energy procurement event for a Company must, in its Part 2 Proposal, submit financial guarantees by providing either cash or a Pre-Bid Letter of Credit for that Company. The Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit for a Company or incorporate only modifications approved by that Company as posted to the procurement website. The modifications approved by each Company were posted to the Final Materials page of the Block Energy and Capacity Procurement section of the procurement website on July 13, 2022.

A Bidder that paid a Bid Participation Fee pursuant to its participation in a prior 2022 procurement event is not required to pay the Bid Participation Fee for the Fall 2022 BEC RFP.

The Final Targets for the Fall 2022 BEC RFP are posted to the Final Materials page of the Block Energy and Capacity section of the procurement website. The document is dated August 8, 2022.

A Bidder that intends to bid on ComEd Products and/or Combinations and is relying on a Foreign Entity as RFP Guarantor must submit the required documents described in Schedule 2B to the Collateral Annex with the Part 2 Proposal. The Part 2 Proposal is due on Thursday, September 01, 2022.

The legal opinion submitted with the Part 2 Proposal must meet all of the requirements in Schedule 2B to the Collateral Annex. In such legal opinion, the recitation of the documents that have been reviewed by counsel as the basis for the opinions expressed may refer the Final ComEd Energy Master Agreement documents posted on July 12, 2022 and available on the procurement website. The recitation should contain a complete list the documents reviewed and contain a link to the documents referenced.

If the Bidder has winning Bids in the Fall 2022 BEC RFP, ComEd will send prepare and send to the Bidder the Guaranty for execution. At that time, in order for ComEd to fully recognize the value of the Guaranty from a foreign entity, ComEd will require an Officer Certification that the Legal Opinion provided with the Part 2 Proposal has not materially changed and that ComEd may rely upon the Guaranty for satisfaction of any obligations that may arise under the terms of the Guaranty.

Additionally, please note that a Bidder may, but is not required to, submit a draft of the documents required under Schedule 2B to the Collateral Annex with its Part 1 Proposal. If a Bidder submits a draft for evaluation with its Part 1 Proposal, the Procurement Administrator will provide the results of this evaluation, including notice of any changes required to the documents for final submission with the Bidder’s Part 2 Proposal, with the Part 1 Notification. Any evaluation communicated to the Bidder of such draft documents is final. The Bidder cannot submit a subsequent request for changes on the basis of this evaluation.

Lastly, ComEd will evaluate the sufficiency of the documents submitted by the Bidder with the Part 2 Proposal in its sole and absolute discretion, without liability or recourse by the RFP Guarantor or the Bidder.

The requirements applicable to foreign entities proposing to serve as a Guarantor are provided in Schedule 2B to the Collateral Annex currently posted to the Final Materials page here. Items 2 and 3 require a foreign entity to deliver:

• the sworn certificate of the corporate secretary (or similar or comparable officer) of such entity that the person executing the Guaranty on behalf of such entity has the authority to execute the Guaranty on behalf of such entity and that the governing board of such entity has approved the execution and delivery of the Guaranty; and
• the sworn certificate of the corporate secretary (or similar or comparable officer) of such entity that such entity has been authorized by its governing board to enter into agreements of the same type as the Guaranty.

A statutory declaration would not be acceptable in place of a sworn certificate to meet the requirements under items 2 and 3 in Schedule 2B to the Collateral Annex.

Additionally, please note that a Bidder may, but is not required to, submit a draft of the documents required under Schedule 2B to the Collateral Annex with its Part 1 Proposal. If a Bidder submits a draft for evaluation with its Part 1 Proposal, the Procurement Administrator will provide the results of this evaluation, including notice of any changes required to the documents for final submission with the Bidder’s Part 2 Proposal, with the Part 1 Notification. Any evaluation communicated to the Bidder of such draft documents is final. The Bidder cannot submit a subsequent request for changes on the basis of this evaluation.

Lastly, ComEd will evaluate the sufficiency of the documents submitted by the Bidder with the Part 2 Proposal in its sole and absolute discretion, without liability or recourse by the RFP Guarantor or the Bidder.

The Bid Windows for Energy Products for the Fall 2022 BEC RFP have been moved up by one (1) hour to allow for earlier notification to Bidders as to whether their Bids will be identified as winning Bids to the ICC.

As stated in the RFP Rules, the Procurement Administrator will notify a Bidder that had Bids in a procurement event for Energy Products that were evaluated whether any of the Bidder’s Bids for the 2022-2023 Delivery Year will be identified as “winning Bids” to the ICC by 4 PM on the applicable Bid Date.

The Procurement Administrator expects to notify a Bidder that had Bids in a procurement event for Energy Products that were evaluated whether any of the Bidder’s Bids for the 2023-2025 Delivery Years will be identified as “winning Bids” to the ICC by 6 PM on the applicable Bid Date, however, it is possible that such notification will be provided after 6 PM.

The Illinois Power Agency Act (“IPA Act”) requires that benchmarks are kept confidential.

Information regarding the establishment of the market-based price benchmark is provided in the IPA Act and pasted below for convenience.

Section 16-111.5 of the Act states that the procurement process shall include “(3) Establishment of a market-based price benchmark. As part of the development of the procurement process, the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor, shall establish benchmarks for evaluating the final prices in the contracts for each of the products that will be procured through the procurement process. The benchmarks shall be based on price data for similar products for the same delivery period and same delivery hub, or other delivery hubs after adjusting for that difference. The price benchmarks may also be adjusted to take into account differences between the information reflected in the underlying data sources and the specific products and procurement process being used to procure power for the Illinois utilities. The benchmarks shall be confidential but shall be provided to, and will be subject to Commission review and approval, prior to a procurement event.”

The final versions of the Block Energy and Capacity RFP Rules and AIC Capacity Agreement are now available under the Fall 2022 Block Energy and Capacity RFP heading on the Final Materials page of the Block Energy and Capacity section of the procurement website. A bidder information webcast will be held on Thursday, July 28, 2022 at 2:00 PM Central and is open to all prospective bidders. The Procurement Administrator will provide an overview of the RFP Process and Rules including qualification requirements and Bid Date procedures for this Fall 2022 BEC RFP. If you wish to participate, please RSVP with the number of phone connections needed.

The Product in the capacity procurement event is annual ZRCs, as such term is defined in MISO’s Business Practice Manuals and MISO’s Open Access Transmission, Energy and Operating Reserve Market Tariff for a given planning year. ZRCs are procured for two (2) Planning Years: the 2023-2024 Planning Year, which is from June 1, 2023 to May 31, 2024 and the 2024-2025 Planning Year, which is from June 1, 2024 to May 31, 2025.

If you meant to inquire about participation in the Indexed REC RFP, which is a procurement for Renewable Energy Credits from utility-scale solar projects, please let us know by replying to this email.

As stated in Section 16-111.5.(e)(5)(iii) of Public Act 95-0481 (the “Act”), which includes the Illinois Power Agency Act (“IPA Act”), “In all cases where there is insufficient supply provided under contracts awarded through the procurement process to fully meet the electric utility’s load requirement, the utility shall meet the load requirement by procuring power and energy from the applicable regional transmission organization market, including ancillary services, capacity, and day-ahead or real time energy, or both; provided, however, that if a needed product is not available through the regional transmission organization market it shall be purchased from the wholesale market.”

Section 16-111.5 of the Act states that the procurement process shall include “(3) Establishment of a market-based price benchmark. As part of the development of the procurement process, the procurement administrator, in consultation with the Commission staff, Agency staff, and the procurement monitor, shall establish benchmarks for evaluating the final prices in the contracts for each of the products that will be procured through the procurement process. The benchmarks shall be based on price data for similar products for the same delivery period and same delivery hub, or other delivery hubs after adjusting for that difference. The price benchmarks may also be adjusted to take into account differences between the information reflected in the underlying data sources and the specific products and procurement process being used to procure power for the Illinois utilities. The benchmarks shall be confidential but shall be provided to, and will be subject to Commission review and approval, prior to a procurement event.”

As stated in Paragraph I.2.11 of the Spring 2022 Block Energy and Capacity RFP Rules, “The evaluation of Bids for a Company in its procurement event for Energy Products proceeds in two steps. In the first step, all Bids that fail to meet the benchmarks are eliminated. In accordance with the Act, benchmarks are established by the Procurement Administrator, in consultation with the IPA, the Procurement Monitor, and the ICC Staff. The benchmarks are confidential and are subject to review and approval by the ICC. In the second step, the Procurement Administrator evaluates the Bids that meet or beat the benchmarks and selects a package of Bids that procures all needed blocks for that Company if possible at the lowest average cost per MWh. This package of Bids is called the Least Cost Package for a Company and each Bid in the Least Cost Package is a winning Bid.”

No, any Bid on any Product or any Combination submitted in response to the BEC RFP is binding until nine (9) business days after the Bid Date. Each Bid constitutes a binding and irrevocable offer to supply a block of a Product or a block of the Combination to a Company at the price provided as the Bid and under the terms of the applicable supplier contract. All Bids together constitute a binding and irrevocable offer to supply to a Company, under the terms of the applicable supplier contract, the number of blocks of each Product at each price submitted and the number of blocks of each Combination at each price submitted up to the maximum willingness to supply for each Segment of each month for that Company.

The Bidder may not submit any additional instructions, contingencies, or conditions on their Bids. Any such additional instructions, contingencies, or conditions will be ignored.

Cash posted as bid assurance collateral will not be netted against the creditworthiness requirements under the applicable supplier contract. Under the Block Energy and Capacity RFP, each Company initiates the return of the posted cash for a Bidder with Bids approved by the Commission once: (1) you have fully executed the applicable supplier contract and fulfilled creditworthiness requirements; (2) you have paid the Supplier Fee to the IPA; and (3) the Company has received an acceptable executed request for the return of cash on the letterhead of the entity to which cash is returned and for which a W‐9 is provided. Additionally, return of cash tendered as bid assurance to AIC is not initiated until AIC receives a Supplier Request Form that AIC finds to be duly completed.

The Commission renders its decision on the results of the procurement events for Energy Products on September 15, 2022.

Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive this information.

The Bid Form(s) for the Fall 2022 BEC RFP will be provided to Bidders with the Part 1 Notification on August 22, 2022.  The Bid Forms, as provided to each Bidder by the Procurement Administrator, are the exclusive method for submitting a Bidder’s Bids.

Bidders wishing to provide cash as bid assurance collateral must provide the following with the Part 2 Proposal:

• A Cash Insert for each procurement event for which the Bidder is submitting a Part 2 Proposal. The Cash Inserts require the Officer of the Bidder to make certain acknowledgements relating to the conditions for which cash may be drawn upon.
• A draft request for return of cash for each procurement event for which the Bidder is submitting a Part 2 Proposal. The requirements for these drafts are provided in the RFP Rules. Sample requests for return of cash are available for each Company in Appendix 14 of the RFP Rules.
• A W-9 for the entity to which cash tendered as bid assurance collateral will be returned.

A Bidder providing cash to AIC may provide AIC’s Supplier Request Form with its Part 2 Proposal. To be duly completed, all information required by Section 2 and 3 (including the certification on page 2) of the Supplier Request Form must be provided. If a Bidder fails to submit AIC’s Supplier Request Form, then the Procurement Administrator will require AIC’s Supplier Request Form to be provided by 12 PM (noon) on the day after the applicable Bid Date.

Bid assurance collateral for the procurement event of Energy Products is due by 12PM (noon) CPT on September 1, 2022, the Part 2 Date. Bid assurance collateral for the procurement event of AIC Capacity Products is due by 12PM (noon) CPT on September 8, 2022.

A Bidder must provide financial guarantees by providing either cash or an executed Pre-Bid Letter of Credit for AIC Capacity Products, drawn for the account of the Bidder. A Pre-Bid Letter of Credit for AIC Capacity Products must be submitted from the issuing bank to AIC and to the Procurement Administrator as an electronic PDF file via electronic means. The electronic PDF file of the Pre-Bid Letter of Credit for AIC Capacity Products serves as the operative instrument.

Beginning with the Spring 2022 Block Energy and Capacity RFP (“BEC RFP”), Bidders have the option to submit cash as bid assurance collateral. A Bidder that elects to submit cash as bid assurance collateral must send additional documents listed in Section V.6. of the RFP Rules to the Procurement Administrator including a W-9 for the entity providing cash as bid assurance collateral and a draft request for the return of cash.

Detailed instructions for the submission of bid assurance collateral for the Fall 2022 BEC RFP were distributed to Bidders on August 16, 2022.

Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive this information.

Additional documentation may include:
• a certificate of completion if the signatory uses DocuSign;
• a Final Audit Report if the signatory uses Adobe Sign;
• evidence that the digital signature has been certified by the signatory using a document signing certificate;

or
• other documentation or information produced by a commercially available software that can be used by the Procurement Administrator to verify the identity of the signatory.
Please see paragraph I.4.4. of the RFP Rules for more information on an “Acceptable Digital Signature” under the RFP Rules.

The RFP Rules for the Block Energy and Capacity RFP require that a Bidder be a member of PJM in good standing (either as an Affiliate Member or as a Voting Member as those terms are defined by PJM) and/or must be a Certified Market Participant in MISO (as this term is defined by MISO), directly or through its relationship with another entity, as of the opening of the Part 1 Window.  A Bidder that is not able to meet this requirement cannot proceed further in the Proposal submission process.

A winning bidder for Energy Products in these Fall 2022 procurement events that is already a Seller under a supplier contract from a prior procurement event can use their post-bid letter of credit that is currently in place with a Company and make amendments to the amount and expiration date as necessary.

You may use scanned wet signatures for purposes of completing the Inserts. An Insert must be sent by email by the signatory or with the signatory on copy if you complete an Insert using a scanned wet signature.

Alternatively, an Insert may be digitally signed using an Acceptable Digital Signature as defined in Paragraph I.4.4 of the RFP Rules. In this case, the Bidder provides the Insert (with the document or information verifying the identity of the signatory) by email or by upload to the application website.

A provision that was first introduced in the AIC agreement for the Spring 2021 procurement event has been maintained for 2022. This provision, under the product definition (page 1-3), describes a process and timeline to develop an amendment to the contract that would be invoked if MISO receives FERC approval to make changes to its resource adequacy construct that requires a product other than a ZRC as currently defined. No other changes have been made to the AIC agreement or RFP in response to this proceeding.

To review the November 30, 2021 filing and other information on this proceeding, including the timeline for approval, please visit the docket on FERC’s website (Docket No. ER22-495)

https://elibrary.ferc.gov/eLibrary/search

Yes, this is correct. Only ZRCs from outside the compliance zone are subject to payment adjustments under the term of the (AIC) Capacity Agreement.

Under the terms of the (AIC) Capacity Agreement, payments to Seller will only be adjusted to reflect an increased payment if the Source Zone ACP is greater than the Compliance Zone ACP where the Compliance Zone is LRZ4. For purposes of the below example, the “ACP” refers to the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) and the Compliance Zone is LRZ4. The example below is hypothetical. The results of the 2023/2024 MISO PRA are not yet available.

No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 365 = $91,250
MISO 2023/2024 PRA Results:
LRZ 4 ACP = $6/MW-day
LRZ 3 ACP = $20/MW-day
Adjustment to Payment = ($20 – $6) x 25 ZRCs x 365 = $127,750
Adjusted Payment = $91,250 + $127,750 = $219,000

Under the terms of the (AIC) Capacity Agreement, payments to Seller will be reduced if the Compliance Zone ACP is greater than the Source Zone ACP where the Compliance Zone is LRZ4. If the amount of the payment reduction is greater than the unadjusted payment, then Seller (not Buyer) will have to pay Buyer under the (AIC) Capacity Agreement. We provide 2 examples below to illustrate this point.

For purposes of the below example, the “ACP” refers to the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) and the Compliance Zone is LRZ4. The examples below are hypothetical. The results of the 2023/2024 MISO PRA are not yet available.

Example 1: Where the adjustment results in a reduced payment from Buyer to Seller.
No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $18/MW-day
Payment to Seller = $18 x 25 ZRCs x 365 days = $164,250
MISO 2023/2024 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 365 days = – $127,750
Adjusted Payment = $164,250 – $127,750 = $36,500

Example 2: Where the adjustment results in payment from Seller to Buyer.
No. of ZRCs won by Seller: 25 ZRCs from Zone 3
Average Winning Bid Price under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 365 days = $91,250
MISO 2023/2024 PRA Results:
LRZ 4 ACP = $20/MW-day
LRZ 3 ACP = $6/MW-day
Adjustment to Payment = – ($20 – $6) x 25 ZRCs x 365 days = – $127,750
Adjusted Payment = $91,250 – $127,750 = – $36,500  (i.e., payment from Seller to Buyer)

The collateral requirement under each of the supplier contracts for the energy procurement events is based on a mark-to-market methodology. For the (AIC) Confirmation Agreement and the (MEC) Confirmation Agreement, this methodology is described in Exhibit D (Collateral Annex) together with Exhibit E (Paragraph 10 to the Collateral Annex), of each agreement. For the (ComEd) Master Agreement, this methodology is described in Schedule 3 (MtM Calculation) to the Collateral Annex. Under the applicable supplier agreement, the Bidder or a Guarantor, if applicable, may be granted unsecured credit based on a creditworthiness assessment. The creditworthiness assessment is based on the Bidder’s (or Guarantor’s, as applicable) financial statements and credit ratings submitted with the Part 1 Proposal and the result of the assessment will be provided to the Bidder with the Part 1 Notification.

If the Bidder is relying on the creditworthiness of a Guarantor, an executed guaranty acceptable to the Buyer must be provided. Any required performance assurance must be posted in the form of cash or a letter of credit. The standard forms of the guaranty and the letter of credit are appended to each of the contracts.

A Bidder that intends to bid on ComEd and is relying on a Foreign Entity as RFP Guarantor must submit the documents referenced in your question with the Part 2 Proposal. A Bidder may, but is not required to, submit a draft of such documents with its Part 1 Proposal. If a Bidder submits a draft of the documents for evaluation with its Part 1 Proposal, the Procurement Administrator will provide the results of this evaluation, including notice of any changes required to the documents for final submission with the Bidder’s Part 2 Proposal, with the Part 1 Notification.

Schedule 2B to the Collateral Annex (Foreign Guarantor Requirements) details the requirements of the Foreign Entity as RFP Guarantor.

The Fall 2022 final supplier contracts will be posted to the Final Materials page on July 12, 2022.

The contract inserts must be provided in Microsoft Word format by email or by upload to the application website with the Part 1 Proposal.

There is no process under the Block Energy and Capacity RFP for bidders to submit an alternate form of guaranty for review by ComEd. Bidders wishing to rely on the financial standing of a Guarantor must use the standard form of guaranty, Schedule 2 to Collateral Annex (Guaranty), and may incorporate the optional changes for ComEd. The optional changes are in the document named “Optional Changes to the Form of Guaranty” posted to the Draft Documents page of the procurement website. A Bidder may also meet the collateral requirements of the (ComEd) Master Agreement by posting cash or using one of two options for the Post-Bid Letter of Credit for ComEd.

Detailed instructions for the submission of the Bid Participation Fee were distributed to account holders on August 8, 2022. Please contact the Procurement Administrator at Illinois-RFP@nera.com to receive this information.

Individuals that register for an account for the Fall 2022 BEC RFP will receive an email prior to the opening of the Part 1 Window with account activation instructions. The Procurement Administrator will also send instructions for accessing and completing the online qualification forms at that time. The Part 1 Window for the Fall 2022 BEC RFP is scheduled to open on August 9, 2022. A Calendar for the Fall 2022 BEC RFP is posted to the Calendar page of the procurement website.